For more information about Vanguard funds, visit vanguard.com or call 877-662-7447 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

Investments in bond funds are subject to interest rate, credit, and inflation risk.

Diversification does not ensure a profit or protect against a loss.

Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. Stocks of companies based in emerging markets are subject to national and regional political and economic risks and to the risk of currency fluctuations. These risks are especially high in emerging markets.

All investing is subject to risk, including the possible loss of the money you invest.

When people hear that I work for Vanguard, they often ask me for advice on how they should invest their money. Fortunately for me, the advice is easy to deliver because for nearly 40 years our recommendations have remained simple and consistent: Know your investment goals. Invest with balance and diversification. Minimize costs. And maintain long-term discipline and focus.

In this market environment in particular, investors are increasingly concerned about their bond holdings. The threat of rising interest rates and concerns about bond market liquidity, among other happenings in the normally staid world of fixed income investing, have everyone talking about the fixed income markets.

But making “knee jerk” reactions to news and noise is rarely a wise move.

The threat of rising rates provides an opportunity to remind you of what you can continue to count on from Vanguard: a consistent approach to providing low-cost and high-quality investments that focus on long-term financial success. Whether you’re looking for an index or active strategy, you can expect from us a commitment to rigorous fundamental research, a long-term focus, and stability.

Six months ago, when I was 15 years into my Vanguard tenure, I was given the opportunity to head Vanguard’s $800 billion Fixed Income Group, replacing longtime bond chief Bob Auwaerter, who enjoyed 32 years at Vanguard. I think it’s fair to say that not too many people felt the change in leadership, and that was by design.

Driving Vanguard’s Fixed Income Group is a deep bench of experienced and tenured credit analysts organized under a hub-and-satellite structure, which facilitates information sharing and integration of our highly risk-controlled and systematic approach to investing. At the core of the structure is a seasoned team of fixed income professionals, including Vanguard’s chief economist and senior portfolio management professionals. Adjoining the hub are the satellites—specialists dedicated to different segments of the fixed income market.

Greg Davis

Gregory Davis, CFA, is a principal and global head of Vanguard Fixed Income Group. He is responsible for Vanguard Fixed Income Group's portfolio management, strategy, credit research, trading, and planning functions. In his prior role, Mr. Davis was the company's Asia Pacific chief investment officer and a director of Vanguard Investments Australia. Earlier, Mr. Davis served as head of bond indexing and as a senior portfolio manager in the Fixed Income Group. Mr. Davis has more than 15 years of investment management experience. Before joining Vanguard in 1999, he worked at Merrill Lynch as an associate in global debt markets. Mr. Davis earned a B.S. in insurance from The Pennsylvania State University and an M.B.A. in finance from The Wharton School of the University of Pennsylvania. He is a CFA® charterholder and a member of the CFA Society of Philadelphia.

Comments

Edward Z. | February 10, 2015 3:35 pm

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For more information about Vanguard funds, visit vanguard.com or call 877-662-7447 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

Investments in bond funds are subject to interest rate, credit, and inflation risk.

Diversification does not ensure a profit or protect against a loss.

Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. Stocks of companies based in emerging markets are subject to national and regional political and economic risks and to the risk of currency fluctuations. These risks are especially high in emerging markets.

All investing is subject to risk, including the possible loss of the money you invest.